The stock market rebounded to record levels on Friday after a better-than-expected job report for October, a big announcement from Pfizer, and a string of strong corporate earnings helped fuel investor optimism about America’s economic recovery.
All three major averages hit new highs: the Dow Jones Industrial Average rose 0.6% to over 200 points, while the S&P 500 rose 0.4% and the tech-heavy Nasdaq Composite rose 0.2%.
The United States created 531,000 jobs in October – more than the 450,000 economists expected, according to data released by the Department of Labor on Friday.
The long-troubled labor market is showing signs of improvement, posting its best monthly result since July, while the unemployment rate fell to 4.6% – its lowest level in more than a year.
A key announcement by vaccine maker Pfizer on Friday also helped boost stocks related to reopening the economy: the company said it would seek FDA approval for its antiviral pill, which increases the risk of hospitalization and death from Covid -19 by 89%.
Although Pfizer’s announcement caused stocks of other vaccine makers like Moderna, BioNTech and Merck to collapse, travel and leisure stocks rebounded widely on the news, leading market gains on Friday.
Solid earnings also contributed to optimism, including from Uber, which reported its first adjusted quarterly profit of all time as ridesharing demand recovered, and Airbnb, which recorded its “strongest quarter ever,” as travel continued to recover.